Guy Kawasaki has an interesting Q&A with Jeffrey Pfeffer, author of What Were They Thinking?: Unconventional Wisdom About Management.

Although the entire post is worth a read, and most probably so is the book, I want to focus on this question:

6. Question: I think I know what you will say, but what’s more important: CRM software or recruiting and training?

Answer: Before you can manage customer relationships through some software product, you first need to build those relationships. And relationships are still largely built through people. That’s why the most important three feet of real estate in retail—or in many industries—is the distance between the customer and the sales associate or individual who is serving that customer. Hiring the best people who are likely to stay, and investing in their training, will build relationships that CRM can manage. Without taking the first steps, there is nothing there.

As a CRM or lead management software provider I often run into prospects and even clients that forget that the CRM solution is a powerful relationship tool, but doesn’t build the relationship for you.

Here are 5 key steps to building a relationship on the Internet and in the Web 2.0 environment:

1. Become searchable: The quickest way to get yourself in the search engines with minimal effort and also create an quality introduction for yourself are through the use of social networking tools like: LinkedIN or Facebook
2. Demonstrate credibility: This takes a little bit of work, but seek out individuals that are respected and considered credible to you target audience or prospects. Then get their endorsement or testimonial via blogroll, guest post, or even better one of their posts.
3. Provide useful information: This is where starting a blog creates a great opportunity to broadcast useful information to your clients and prospective clients
4. Communicate directly: Once you have built your foundation it is time to get personal. Pick an interesting person you read on the Internet, a prospect, or a current client to write a personal email to everyday. I love using questions in these emails. They are less presumptuous and respectfully compel some response.
5. Turn online relationships into offline ones too: This is key to long-term and valuable relationships. So, if you are at a conference or in an online friends area, make an appointment to get together.

Start building that foundation, engage someone, and close that final “[virtual] three feet of real estate” to make a relationship. Then use your CRM to make sure you never leave a single relationship or prospective relationship neglected.

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CRM, relationships, Internet, social network, guy kawasaki